Gold slips as dollar strengthens, markets await Fed meeting

Gold prices fell on Tuesday as the dollar strengthened, with markets awaiting the upcoming US Federal Reserve policy decision for clues on the outlook for interest rates.

Spot gold dropped 0.7 percent to $4,044.81 per ounce, after rising nearly one percent on Monday. US gold futures for August delivery slipped 0.8 percent to $4,045.40.

According to Reuters, Ilya Spivak, head of global macro research at financial content network Tastylive, said: "We are fluctuating in this narrow range between $3,950 and $4,200, and I think the market is just waiting for signals from the Federal Reserve."

Markets are currently pricing in an 81 percent chance of an interest rate hike at the central bank's September meeting.

Among other precious metals, spot silver fell 1.9 percent to $57.30 per ounce, platinum dropped one percent to $1,605.14, and palladium declined 1.6 percent to $1,271.09.